Intesa Sanpaolo Increases Monte dei Paschi di Siena Offer to 31.4 Billion Euros
Intesa Sanpaolo raised its public purchase and exchange offer (Opas) for Banca Monte dei Paschi di Siena to 31.4 billion euros, increasing the cash component by 25 cents per share to 1.25 euros, according to ilsole24ore.com. Carlo Messina’s bank announced the revised terms late on Saturday, October 3, 2026, contingent on Siena shareholders rejecting CEO Luigi Lovaglio’s alternative industrial plan during the upcoming October 29 assembly. If even a single part of the Lovaglio plan receives approval, Intesa Sanpaolo stated it will invoke failure of its offer conditions and let the bid lapse entirely, as reported by corriere.it.
The October 29 Assembly Referendum on Competing Strategies
The upcoming extraordinary meeting on October 29 functions as a direct referendum between Intesa Sanpaolo’s takeover proposal and Lovaglio’s multi-part defensive strategy, according to Milano Finanza. The competing Siena plan features simultaneous exchange offers for Banco Bpm and Banca Generali, alongside a voluntary capital reduction to distribute a 4% stake in Assicurazioni Generali, as detailed by corriere.it. Intesa Sanpaolo’s board argued that Siena’s dual-target structure is unusually complex and carries severe execution risks, noting in its official communication that the target transactions are offered at discounts of 8.1% for Banco Bpm and 3.2% for Banca Generali relative to pre-announcement prices.
Cash Rises While Structural Conditions Tighten
Under the revised terms outlined by Adnkronos, if Siena shareholders reject the Lovaglio plan entirely, Intesa Sanpaolo will boost the cash portion by 25 cents to 1.25 euros per share, supplementing the unchanged stock consideration of 16 Intesa shares for every 10 MPS shares. Total monetary value for full acceptance reaches 31.4 billion euros, split between 27.6 billion euros in shares and 3.8 billion euros in cash. Milano Finanza noted that Intesa explicitly ruled out Mediobanca merger approval as a deal-breaker, declaring it will waive that condition so that its own management can handle the integration later and avoid operational overlap.
Industrial Letters and Pre-Existing Alliances
Ahead of the shareholder showdown, MPS Chief Executive Luigi Lovaglio sent a letter dated September 28, 2026, to the board of directors of Generali to explore potential industrial cooperation, as reported by Borsa Italiana. Teleborsa revealed that the communication covers bancassurance in savings, pensions, and protection, alongside asset management and wealth management platforms. The initiative arrives as the distribution agreement between Siena and French insurer AXA approaches expiration in 2027, though Borsa Italiana observed that MPS remains bound by passivity rules due to Intesa’s pending takeover bid.
Frequently Asked Questions About the Intesa and MPS Deal
What specific votes will cause Intesa Sanpaolo to cancel its offer?
According to ilsole24ore.com, Intesa Sanpaolo will revoke its offer if the MPS assembly on October 29 approves the exchange offers for Banco Bpm or Banca Generali, related capital increases, or the capital reduction required for the extraordinary dividend.
How much total cash is Intesa Sanpaolo offering under the improved terms?
Adnkronos reported that the total cash component rises to 3.8 billion euros out of a 31.4 billion euro total valuation, assuming full participation and rejection of the competing Siena plan.
What did the letter from Luigi Lovaglio to Generali address?
Borsa Italiana reported that the September 28 letter focused on possible areas of cooperation in bancassurance, asset management, and wealth management ahead of the 2027 expiration of MPS’s partnership with AXA.
What is the exchange ratio offered by Intesa Sanpaolo to MPS shareholders?
Corriere.it confirmed the offer provides 16 Intesa Sanpaolo shares for every 10 MPS shares, alongside the increased cash consideration of 1.25 euros per share.
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